DEPARTMENT  OF  COMMERCE 

/  j  (  £   WASTE-RECLAMATION  SERVICE 

H.   L.  BALDENSPERGER,   Chief 


REPORT  OF  AN  INVESTIGATION 


OF 


THE  AKRON  INDUSTRIAL 
SALVAGE  CO. 


A  COMMUNITY  INCORPORATED  WASTE-SAVING  EXPERIMENT 


WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 
1919 


DOCUM 
DEPT. 


CONTENTS. 

Page. 

Theory  and  program 

A  war-time  concept — A  peace-time  development 

Early  program 4 

Primitive  equipment 

Financial  return '. C 

Method  of  measuring  cost 

Future  development — Waste  drives  for  city  charities 9 

Collection  of  the  waste  of  public  buildings 11 

Utilization  of  prison  labor 11 

Training  of  salvage  managers VI 

National  Waste  Products  (Ltd.) — A  British  national  incorporated  waste- 
saving  program 

(2) 


REPORT  OF  AN  INVESTIGATION  OF  THE  AKRON 
INDUSTRIAL  SALVAGE  CO. 


THEORY  AND  PROGRAM. 

The  Akron  (Ohio)  Industrial  Salvage  Co.  is  in  reality  a  civic 
movement  for  the  development  of  a  city- wide  system  of  waste  recla- 
mation to  deal  not  only  with  the  waste  of  the  home,  but  also  with 
the  waste  of  the  store  and  factory.  Fostered  by  the  industrial  leaders 
of  the  community,  the  firms  and  corporations  holding  the  stock  of 
the  salvage  company  represent  approximately  To  per  cent  of  the  in- 
dustrial capitalization  of  that  community. 

The  theory  underlying  the  experiment  is  that  every  article  has  a 
value  in  use  and  that  every  avenue  of  waste  utilization  should  be  so 
investigated  that  no  article  which  can  be  used  in  industry  shall  be 
destroyed.  Nor  will  the  company  limit  itself  to  this  field  of  investi- 
gation; new  methods  of  utilization  will  be  studied  and  industries 
established  within  the  community  to  consume  the  by-products  of  in- 
dustrial and  communal  life.  This  community  commercial  enterprise, 
operated  with  an  ideal,  will  be  so  developed  that  the  profits  which 
may  accrue  will  not  all  be  distributed  in  the  form  of  a  dividend,  but 
will  be  expended  to  defray  the  cost  of  the  research  work  which  will 
be  necessary  in  order  to  further  this  theory  of  waste  reclamation. 

It  is  the  belief  that  habits  of  thrift  can  be  inculcated  by  demon- 
strating to  the  members  of  the  company,  as  well  as  to  the  community 
at  large,  the  added  value  which  accrues  through  the  proper  sorting 
of  material,  as  well  as  the  added  price  which  can  be  secured  through 
the  handling  of  large  quantities.  It  is  believed  that  this  will  have  a 
tendency  to  check  the  present  system  of  destruction  of  material  when 
the  accumulation  in  the  hands  of  the  individual  is  small. 

It  is  the  idea  that  the  pooling  system  will  enable  the  individual  or 
firm  with  a  small  daily  or  weekly  accumulation  to  dispose  of  it  at 
the  same  price  per  pound  as  is  now  secured  only  by  firms  with  a 
larger  turnover,  and  at  the  same  time  handle  it  at  the  same  cost  per 
pound  for  each,  irrespective  of  volume.  This  will  have  a  tendency  to 
encourage  saving  on  the  part  of  the  individual  or  firm  who  previously 
destroyed  because  it  was  too  expensive  to  attempt  to  accumulate 
sufficient  material  to  make  a  fair  return. 

(3) 


A  WAR-TIME  CONCEPT— A  PEACE-TIME  DEVELOPMENT. 

The  Akron  Industrial  Salvage  Co.  is  a  direct  outgrowth  of  the 
activities  of  the  War  Industries  Board.  The  plan  was  originated 
by  the  Commercial  Economy  Board  of  the  Council  of  National  De- 
fense (later  transferred  to  the  War  Industries  Board).  It  was 
further  developed  by  the  War  Prison  Labor  and  National  Waste- 
Reclamation  Section  (later  transferred  to  the  Department  of  Com- 
merce as  the  Waste-Reclamation  Service) ;  but  its  successful  opera- 
tion is  attributable  to  the  activity  and  interest  of  George  W.  Sherman, 
manager  of  the  salvage  department  of  the  B.  F.  Goodrich  Co.,  of 
Akron,  Ohio.  The  theory  was  evolved  in  war  times;  its  feasibility 
was  demonstrated  after  the  signing  of  the  armistice. 

The  plan  was  laid  before  Mr.  Sherman  by  representatives  of  the 
War  Industries  Board  early  in  January,  1918,  with  an  idea  of  having 
an  investigation  made  as  to  the  feasibility  of  an  incorporated  waste- 
saving  movement.  After  a  preliminary  investigation  in  Akron, 
Ohio,  Mr.  Sherman  placed  the  matter  before  the  chamber  of  com- 
merce, and  a  salvage  committee  was  appointed  to  further  study  the 
question.  In  accordance  with  the  recommendation  of  the  committee, 
a  number  of  interested  persons  organized  the  Akron  Industrial 
Salvage  Co.,  which  was  incorporated  May  10,  1918,  under  the  laws 
of  the  State  of  Ohio.  The  company  was  capitalized  for  $25,000,  each 
share  being  $100  par  value. 

EARLY  PROGRAM. 

At  the  time  of  incorporation  the  directors  had  not  established  a 
definite  program  for  operation,  and  for  several  months  they  experi- 
mented with  different  methods  to  determine  which  would  be  the  most 
advisable  to  adopt  as  the  basis  of  operation.  The  company  attempted 
to  serve  as  a  selling  agent  solely  for  the  material,  which  was  to  be 
moved  by  the  company  direct  from  the  store  or  factory  to  the  con- 
sumer. This  plan  proved  unworkable,  due  to  the  small  amount  of  ac- 
cumulation and  the  multiplicity  of  grades  which  were  secured. 

At  that  time  the  directors  were  interesting  only  firms  of  small 
capitalization,  it  being  the  idea  that  these  industries  had  relatively 
the  largest  amount  of  waste.  It  was  further  believed  that  the  small 
industries  would  be  suspicious  of  any  movement  that  was  supported 
by  the  heavily  capitalized  concerns. 

The  converse  was  the  truth;  the  smaller  firms  were  skeptical  of  the 
success  of  a  movement  that  apparently  had  not  received  the  support 
of  the  larger  concerns.  It  then  became  necessary  for  the  company, 
in  order  to  secure  the  additional  tonnage,  to  interest  the  firms  which 
had  a  large  volume  of  waste.  After  a  brief  campaign  sufficient  stock 
was  sold  to  the  larger  concerns  to  warrant  proceeding  along  the  orig- 


inal  line,  and  the  company  again  endeavored  to  act  as  a  sales  agent. 
But  the  situation  in  regard  to  the  multiplicity  of  grades  was  simply 
intensified,  and  it  was  necessary  to  discover  a  new  basis  of  operation. 

It  was  then  proposed  that  the  company  utilize  the  facilities  of  an 
established  waste  merchant — the  company  to  turn  over  the  material 
to  him  for  sorting,  but  to  be  responsible  for  the  collection,  sale,  and 
payment  of  the  individual  accounts.  However,  the  cost  of  the  sort- 
ing service  was  prohibitive,  and  the  refusal  of  the  dealer  to  receive 
material  .that  might  be  considered  inflammable  rendered  it  impera- 
tive that  the  company  develop  an  entirely  different  method  of  pro- 
cedure if  they  were  to  carry  out  the  concept  upon  which  their  com- 
pany had  been  founded  and  organized,  namely,  that  they  should  find 
an  avenue  of  use  for  every  item  of  waste. 

The  company  then  determined  to  take  charge  not  only  of  the  col- 
lection and  sales  but  of  the  sorting  as  well,  and  in  order  to  carry 
out  this  project  it  was  necessary  to  secure  a  warehouse.  After  ex- 
tensive negotiations,  due  to  the  fact  that  warehousing  was  at  a  pre- 
mium at  that  time,  they  secured  a  warehouse  with  railroad-siding  fa- 
cilities. 

PRIMITIVE  EQUIPMENT. 

The  warehouse,  which  contains  approximately  45,000  square  feet 
of  operating  space,  is  ill  adapted  to  the  needs  of  the  company.  The 
sagging  floors  and  windows  without  glass  would  have  been  sufficient 
to  daunt  a  less  courageous  group.  But  the  directors  were  certain 
that  despite  all  handicaps  the  project  could  be  successfully  developed, 
and  in  spite  of  these  obstacles  the  first  consignment  was  moved  into 
the  warehouse  on  September  21,  1918.  Before  the  material  could  be 
handled  it  was  necessary  to  shore  up  the  floors,  build  sorting  tables 
out  of  scrap  packing  boxes,  and  to  install  a  crude  heating  system. 
The  company  was  forced  to  expend  over  $2,000  of  their  meager  cap- 
ital for  repairs  before  a  pound  of  material  could  be  handled. 

An  idea  of  the  way  difficulties  wrere  met  and  overcome  by  this 
pioneer  movement  in  community  waste  saving  can  be  gained  from 
the  fact  that  the  approach  to  the  building  is  of  such  a  nature  that 
all  material  must  be  unloaded  outside  the  building  and  carried  by, 
hand  into  a  poorly  lighted  basement  prior  to  being  sent  to  the 
sorting  room,  which  is  situated  in  the  upper  story  of  the  warehouse. 
This  material  is  moved  to  the  sorting  room  by  an  elevator  operated 
without  power.  The  hand  winch  required  the  combined  strength 
of  two  men  in  order  to  raise  and  lower  the  elevator.  Such  a  sys- 
tem, however,  required  the  expenditure  of  too  much  energy,  and 
another  system  had  to  be  devised.  By  passing  a  rope  over  a  series 
of  pulleys  and  hitching  the  rope  to  a  whiffietree,  a  horse  is  now 
utilized  for  this  purpose;  and  amid  a  Babel  of  shouted  orders  the 


material  is  slowly  hoisted  to  the  sorting  room  by  means  of  this 
"  one-horsepower  "  system. 

The  sorting  equipment  is  us  primitive  and  crude  as  the  elevator. 
Many  commercial  firms  handle  waste  paper  over  a  moving  canvas 
belt  or  conveyor  and  bale  it  with  a  power  baler.  The  company, 
until  they  could  demonstrate  the  feasibility  of  the  project,  were  not 
justified  in  making  a  large  expenditure  for  equipment.  The  methods 
they  devised  to  meet  the  situation  but  add  color  to  the  plant.  Bags 
made  of  scrap  burlap,  and  which  hang  from  the  ceiling  of  the  first 
floor,  receive  the  sorted  material  from  the  sorting  tables  on  the 
second  floor.  These  bags,  which  are  about  20  feet  in  length,  hang 
like  huge  brown  icicles  along  one  side  of  the  baling  room,  and 
with  their  grotesque  stalactitic  formation  make  the  plant  a  veritable 
"  Old  Curiosity  Shop."  The  bags,  which  are  tied  at  the  bottom,  are 
emptied  into  a  hand  baler  that  is  moved  from  bag  to  bag,  so  that  one 
baler  is  sufficient  to  handle  the  entire  output. 

In  addition  to  the  warehouse,  there  is  additional  storage  space 
in  a  shed  which  has  approximately  3,900  square  feet  of  floor  space. 
This,  in  addition  to  the  half  acre  of  ground,  gives  adequate  storage 
facilities  for  material  that  does  not  have  to  be  protected  from  the 
weather,  and  the  yard  and  shed  are  filled  with  boxes,  barrels,  and 
nondescript  items  of  waste. 

FINANCIAL  RETURN. 

The  Akron  Industrial  Salvage  Co.,  operating  in  an  inadequate 
building  and  with  this  crude  and  makeshift  equipment,  has  demon- 
strated beyond  question  that  the  plan  is  both  practicable  and  profit- 
able. From  October  1,  1918,  to  January  1,  1919,  they  handled  about 
600,000  pounds  of  waste  material  and  sold  approximately  220,000 
pounds.  The  sale  value  of  the  material  was  slightly  more  than 
$6,000.  The  cost  of  operation,  including  all  expenditures  incidental 
co  incorporation,  repairs  to  building,  and  purchase  of  equipment, 
was  a  little  more  than  $11,GOO.  The  inventory  value  of  the  material 
on  hand,  January  market  quotation  serving  as  the  basis  of  valuation, 
was  about  $10,000. 

A  study  of  the  financial  statement  for  the  months  of  January  and 
February,  1919,  indicates  that  the  company  is  rapidly  developing  its 
organization  and  standardizing  its  method  of  operation.  During 
the  first  two  months  of  1919  the  company  handled  approximately 
1,000,000  pounds  of  waste  material,  which  was  an  increase  of  74 
per  cent  over  the  amount  handled  during  the  previous  three  months. 
The  value  of  the  material  sold  was  a  little  more  than  $12,000,  or 
an  increase  in  the  gross  return  of  96  per  cent;  the  cost  of  operation 
was  but  $11,000,  or  a  decrease  of  4  per  cent  over  the  cost  of  the 


previous  three  months.  This  showing  was  made  on  a  declining 
market.  The  apex  of  the  price  curve  for  waste  material  was  reached 
in  October  of  1918;  from  that  time  there  was  a  downward  move- 
ment more  or  less  sharp  until  January,  1919,  when  prices  were  near- 
ing  the  prewar  level.  Despite  this  decline  the  company  found  an 
active  market  and  secured  attractive  prices  for  its  material.  This 
statement  reveals  the  potentiality  that  lies  in  this  movement  for  the 
organization  of  a  salvage  company  operated  for  the  benefit  of  the 
community. 

This  increase  in  tonnage  for  the  months  of  January  and  February 
can  be  accounted  for  by  the  fact  that  contracts  for  the  disposal  of 
waste  material  usually  terminate  at  the  first  of  the  year.  The  mem- 
ber firms,  in  renewing  their  contracts,  withheld  certain  items  and 
arranged  to  turn  designated  materials  over  to  the  salvage  company. 
Another  explanation  lies  in  the  fact  that  certain  firms,  handling  their 
own  waste,  were  finding  it  more  profitable  to  turn  over  certain  grades 
of  unsorted  waste  to  the  company  and  have  the  same  sorted  and  sold 
through  that  channel.  The  experience  of  a  manufacturing  concern 
of  international  repute  in  handling  its  waste  is  a  case  in  point.  This 
concern,  operating  with  a  rather  skilled  personnel,  which  was  en- 
titled to  all  the  benefits  of  the  company's  plans  for  welfare,  vocational 
education,  and  insurance,  and  utilizing  floor  space  which  had  a  high 
theoretical  rental  charge  per  square  foot,  could  only  handle  its  waste 
paper  and  similar  lines  of  waste  at  a  relatively  high  cost  per  pound. 
The  Akron  Industrial  Salvage  Co.,  employing  a  less-skilled  group 
and  operating  in  a  building  where  the  cost  per  square  foot  was  low, 
was  enabled  to  handle  such  material  at  a  low  tonnage  cost.  These 
facts  were  called  to  the  attention  of  the  concern  in  question,  and  upon 
investigation  the  directors  decided  to  turn  over  all  waste  paper  from 
their  plant  to  the  salvage  company,  thereby  assuring  the  company 
of  a  large  and  steady  volume  of  waste  material  that  could  be  handled 
at  a  low  cost  per  pound.  A  further  increase  in  tonnage  of  this  nature 
may  be  expected,  as  the  question  of  turning  over  the  rag  waste  from 
this  same  industry  is  now7  under  advisement,  and  in  case  the  com- 
pany can  successfully  handle  these  two  items  of  waste  at  a  low  cost 
per  pound  it  is  believed  that  a  number  of  other  firms  will  adopt  this 
policy  and  will  turn  over  the  bulk  of  their  waste  paper  and  similar 
items  of  waste  to  the  salvage  company,  thereby  decreasing  the  activi- 
ties of  the  salvage  department  of  the  individual  firms  and  corpo- 
rations and  eliminating  in  a  large  measure  the  duplication  that  now 
exists  as  a  result  of  the  independent  sorting  systems  maintained  by 
the  larger  firms. 

Despite  this  increase  in  tonnage,  the  company  has  not  at  any  time 
secured  all  the  waste  of  any  one  firm  or  corporation  holding  stock 
in  the  salvage  company.  On  January  1,  1919,  there  were  115  firms 


8 


holding  stock  in  the  company. 
by  them  was  as  follows: 


The  amount  of  material  turned  in 


Firms  turning  in  material. 

Quantity. 

Firms  turning  in  material. 

Quantity. 

41  turned  in 

Pounds. 
0 

4  turned  in  less  than  

Pounds. 
7,500 

4  turned  in  less  than 

250 

2  turned  in  less  than        

10,000 

3  turned  in  less  than 

500 

4  turned  in  less  than                           .  ... 

15,000 

20  turned  in  less  than 

2,000 

3  turned  in  less  than  

20,000 

13  turned  in  less  than 

4,000 

4  turned  in  less  than  

30,000 

8  turned  in  less  than 

5,000 

9  turned  in  more  than  

30,000 

The  statement  for  January  reveals  with  what  success  the  company 
was  enabled  to  apply  the  theory  that  all  material  should  be  con- 
sumed as  far  as  practicable  in  the  home  markets.  Eight  per  cent 
of  the  cost  of  operation  for  this  month  was  charged  against  drayage 
of  the  material  from  the  business  places  to  the  sorting  plant  and 
from  that  point  to  the  consumer;  but  0.0&  per  cent  of  the  cost  of 
operation  is  charged  against  freight.  The  company  was  enabled  to 
find  an  attractive  market  within  the  limits  of  the  city,  thereby 
eliminating  the  system  of  cross-shipments  which  characterizes  the 
waste  trade. 

METHOD  OF  MEASURING  COST. 

In  determining  how  the  seller  should  be  reimbursed  for  his  mate- 
rial the  company  has  evolved  a  rather  unique  system  of  costs  and 
payments.  The  system  is  modeled  upon  the  plan  in  vogue  in  some 
plants  where  the  departments  are  charged  for  their  bulk  weight 
and  credited .  with  the  net  proceeds.  Upon  delivery  of  the  material 
to  the  driver  of  the  salvage  company  the  seller  is  furnished  with  a 
memorandum  shipping  sheet  upon  which  the  driver  certifies  that 
material  approximating  so  many  pounds  was  received.  A  second 
sheet  is  accomplished  when  the  material  in  bulk  is  received  and 
weighed  in  at  the  warehouse,  the  firm  being  credited  with  the  weight 
unsorted.  The  material  is  then  sent  through  the  sorting  room  to 
be  graded,  and  the  bulk  is  broken  into  its  component  parts  and  the 
third  record  entered  upon  the  books  of  the  company,  crediting  the 
concern  with  the  different  grades  and  weight  of  each  grade.  In 
filling  an  order  for  a  particular  grade  the  item  which  may  be  credited 
to  the  account  of  several  firms  will  be  sold  and  each  firm  credited 
with  its  share  in  proportion  to  the  amount  of  material  sold  in  the 
pool.  After  the  cost  of  operation  is  deducted  each  firm  will  be  paid 
for  its  portion  of  material  sold. 

The  cost  of  operation  is  determined  on  a  pound  basis  and  in  work- 
ing out  this  system  the  plan  in  vogue  in  some  industries  operating 
salvage  departments  has  been  followed.  The  total  monthly  cost, 
including  depreciation  and  interest  charges,  actual  or  theoretical, 


is  divided  by  the  volume  handled,  which  gives  the  theoretical  cost 
per  pound.  This  system,  with  modifications  to  suit  their  peculiar 
needs,  has  been  followed  by  the  salvage  company  in  determining  its 
charges. 

This  system  has  both  advantages  and  disadvantages.  Unless  the 
tonnage  is  large  and  uniform  the  cost  of  handling  is  certain  to  be 
excessive  and  the  amount  of  sales  limited,  due  to  the  fact  that  it  may 
be  several  months  before  sufficient  quantity  of  any  one  grade  can 
be  secured.  In  addition,  there  is  the  disadvantage  of  deferred  pay- 
ment ;  a  firm  may  not  receive  payment  in  full  on  all  of  a  shipment  of 
a  given  date  for  two  or  three  weeks  in  the  case  of  waste  paper,  and 
possibly  several  months  in  the  case  of  scrap  iron.  Apparently  the 
advantages  outweigh  the  disadvantages,  because  the  members  are 
satisfied  with  the  system  and  this  may  be  attributed  to  the  fact  that 
the  return  for  a  pound  of  material  handled  through  this  system  is 
usually  higher  than  when  it  is  sold  unsortecl.  But  it  is  doubtful 
if  any  commercial  enterprise  could  follow  such  a  system  and  hold  its 
clientele.  It  is  due  to  the  fact  that  the  Akron  Industrial  Salvage  Co. 
is  primarily  a  community  saving  plan  which  permits  the  successful 
adoption  of  such  a  system. 

These  are  the  salient  features  of  the  Akron,  Ohio,  community 
waste-saving  program,  which  is  only  in  its  infancy;  but,  judging 
from  the  past  development,  as  well  as  from  the  plans  now  under 
consideration,  it  is  safe  to  predict  that  this  movement,  which  is  the 
outgrowth  of  the  war-time  efforts  for  conservation,  will  make  a  fun- 
damental contribution  to  the  movement  for  waste  conservation. 

FUTURE    DEVELOPMENT— WASTE    DRIVES   FOR   CITY   CHARITIES. 

The  Wustc-Keclamation  Council  of  Akron,  Ohio,  a  body  appointed 
by  the  mayor  at  the  request  of  the  Department  of  Commerce  to  deal 
with  waste  reclamation  in  that  center,  is  now  considering  a  plan  for 
the  organization  of  a  waste-material  drive,  the  proceeds  of  the  sale  of 
the  material  to  be  applied  to  the  charitable  work  of  that  center. 
Under  this  program  it  is  proposed  that  the  material  will  be  collected, 
sorted,  and  sold  by  the  Akron  Industrial  Salvage-  Co.,.  tho  net  pro- 
ceeds to  be  turned  over  to  the  organizations  participating  in  the 
drive.  This  program  is  based  upon  a  plan  that  has  been  utilized  by  a 
commercial  concern  in  organizing  similar  community  drives  for 
waste  material. 

Under  this  plan  the  city  will  be  districted  and  the  waste  material 
will  be  collected  from  the  homes  in  a  given  district  on  a  specified  day. 
The  housewife  will  be  requested  to  place  the  waste  material  on  the 
doorstep  in  a  proper  receptacle,  and  in  case  the  proceeds  are  to  be 
turned  over  to  a  specific  organization  this  fact  should  be  indicated 
by  attaching  to  the  bundle  or  bale  a  special  tag,  which  is  to  be  f  ur- 
114902°— 19 2 


10 

nislied  by  the  company.  These  tags  will  be  of  different,  colors  in 
accordance  with  a  prearranged  schedule — red  tags  representing  the 
Red  Cross,  blue  tags  for  Young  Men's  Christian  Association,  etc. 

The  material  of  any  designated  district  will  be  moved  to  the  plant 
of  the  company  and  the  material  segregated,  the"  tagged  material 
being  moved  to  the  organization  bins,  and  the  untagged  to  the  general 
pool.  This  material  will  be  sorted  and  each  organization  credited 
with  the  specific  grades  secured  in  a  manner  similar  to  the  credit 
system  used  by  the  company  in  handling  a  member's  waste  material. 
The  same  system  of  cost  will  be  employed,  and  the  net  proceeds  paid 
to  the  organization  as  rapidly  as  the  material  is  sold.  The  untagged 
material  will  be  handled  as  a  general  fund,  and  the  net  proceeds 
divided  on  an  equal  basis  among  all  the  charities  participating  in  the 
drive. 

By  adopting  this  scheme  the  Waste  Reclamation  Council  believes 
that  a  permanent  and  regular  system  of  house-to-house  collection  can 
be  established  by  the  Akron  Industrial  Salvage  Co.,  thereby  assuring 
the  housewife  that  her  waste  material  will  be  moved  at  regular  inter- 
vals, which  will  assure  its  saving  rather  than  its  destruction  in  the 
home.  It  is  further  believed  that  by  arranging  for  the  contribution 
of  this  material  to  the  charitable  work  of  the  community  the  house- 
wife will  be  more  interested  in  the  matter  and  will  make  special 
efforts  to  conserve  the  valuable  waste  of  the  home.  By  instituting  a 
regular  and  systematic  method  of  collection  and  sale  of  waste  mate- 
rial the  amount  of  expected  revenue  for  charitable  purposes  can  be 
more  or  less  definitely  determined,  thereby  assisting  the  board  of 
managers  of  the  organization  in  the  formulation  of  the  budget. 

This  plan  will  be  of  benefit  to  the  salvage  company,  as  it  will  as- 
sure a  steady  movement  of  material  that  can  be  handled  at  a  rela- 
tively low  cost  per  pound,  thereby  enabling  the  company  to  make  a 
small  profit  to  be  set  aside  for  replacement  or  additional  research 
work.  The  salvage  company  will  not  be  in  a  position  to  develop  its 
work  in  accordance  with  the  original  program  unless  a  large  ton- 
nage of  quickly  moving  material  can  be  secured,  and  it  is  believed 
that  the  solution  of  the  problem  lies  in  part  in  a  city- wide  system  of 
collection  of  waste  material. 

Suph  a  system  will  be  of  benefit  to  the  consumers  of  waste  mate- 
rial, as  it  will  assure  a  more  or  less  steady  flow  of  waste  material  ir- 
respective 01  the  market.  Prior  to  the  war  price  was  the  sole  stimu- 
lus for  waste  conservation.  As  demand  increased  prices  rose,  and 
the  collector  was  enabled  to  offer  an  attractive  price  to  the  house- 
holder for  the  waste;  as  prices  declined  the  collector  cither  decreased 
prices  or  accepted  only  material  for  which  there  was  an  active  de- 
mand. As  a  result  of  this  situation  the  tendency  to  destroy  the  non- 
active  material  became  fixed,  with  a  result  that  sufficient  material  to 


11 

meet  the  demand  did  not  move  to  the  market,  and  prices  again  rose; 
but  the  level  of  high  prices  remained  for  some  little  time  before  the 
collector  could  overcome  the  habit  of  destruction.  Such  a  system 
made  it  difficult  for  the  sorter,  as  well  as  the  consumer  of  waste  ma- 
terial, to  develop  methods  of  determining  costs  when  negotiating  con- 
tracts for  the  supply  of  raw  or  finished  material.  The  salvage  com- 
pany, freed  from  the  necessity  of  paying  the  housewife  for  the  ma- 
terial, will  be  enabled  to  handle  it  as  long  as  the  price  received  for 
the  sorted  material  is  equal  to  the  cost  of  operation. 

COLLECTION  OF  THE  WASTE  OF  PUBLIC  BUILDINGS. 

In  order  to  assist  the  Akron  Industrial  Salvage  Co.  to  secure  ton- 
nage, the  Waste  Reclamation  Council  has  evolved  a  system  of  collec- 
tion of  waste  paper  from  the  public  schools  of  that  city,  the  material 
to  be  collected,  sorted,  and  sold  by  the  company.  Each  school  will 
be  credited  with  the  amount  of  graded  material  turned  in,  and  the 
net  proceeds  will  be  turned  over  to  the  individual  school  for  mainte- 
nance of  playgrounds  or  activities  of  the  student  body.  C.  M. 
Woodruff,  chairman  of  the  maintenance  committee  of  the  school 
board  and  representative  of  the  Young  Men's  Christian  Association 
on  the  Akron  Waste-Reclamation  Council,  has  arranged  to  have  the 
material  moved  in  bags  from  the  school  to  the  sorting  plant,  thereby 
assuring  that  the  material  can  be  handled  cheaply  and  efficiently. 

The  Waste  Reclamation  Council  is  also  studying  the  question  of 
the  disposal  of  waste  paper  from  the  city  hall  and  other  public  build- 
ings, as  well  as  the  newspapers  secured  from  the  street  cans.  As 
soon  as  a  workable  program  is  developed  the  matter  will  be  pre- 
sented to  Hon.  J.  S.  Myers,  mayor  of  Akron,  who  is  keenly  inter- 
ested in  the  development  of  the  work  of  the  company,  and  it  is  be- 
lieved arrangements  can  be  effected  so  that  some  of  this  material  can 
be  handled  by  the  company,  the  city  to  be  dealt  with  as  if  it  wrere  a 
shareholder  of  the  company  and  the  material  handled  under  the  de- 
ferred-payment plan. 

UTILIZATION  OF  PRISON  LABOR. 

The  Chicago  Salvage  System  may  be  adopted  in  part  in  the  de- 
velopment of  a  campaign  to  organize  Akron  for  waste  conserva- 
tion. The  Chicago  Salvage  System  was  inaugurated  at  the  Chicago 
House  of  Correction  by  the  then  superintendent,  John  L.  Whitman, 
in  the  fall  of  1915,  the  prisoners  in  the  institution  being  employed 
in  handling  the  waste  from  the  public  buildings,  sorting  it  for  the 
market,  or  repairing  it  for  further  use.  The  first  financial  state- 
ment of  the  system  covers  the  period  from  November  1,  1915,  to 
December  31,  1916.  The  city  departments  received  $129,423  for  ma- 


12 

terial  they  had  previously  sold  for  approximately  $13,000.  The  city 
was  credited  with  $11,000  for  the  labor  of  the  prisoners  on  this 
material,  and  over  $40,000  was  turned  into  a  prisoners'  relief  fund 
to  be  utilized  for  relief  of  the  dependent  families  of  the  inmates. 
In  addition  to  this  return  on  the  waste  of  the  city  departments, 
hundreds  of  articles  were  repaired  and  utilized  in  connection  with 
the  industries  of  the  institution.  Discarded  shovels  were  repaired 
and  used  at  the  brickyard;  worn  harness  was  strengthened  and  put 
back  into  use ;  discarded  parts  of  vehicles  were  utilized  in  making 
carts  for  use  at  the  stone  quarry;  a  testing  plant  for  discarded  light 
bulbs,  received  in  the  city  waste,  was  established,  and  sufficient  usable 
lights  were  found  to  supply  the  entire  institution ;  the  "  dead  "  lights 
wore  broken  up  and  over  $9,000  worth  of  platinum  recovered;  the 
broken  furniture  and  equipment  from  the  public  schools  were  re- 
paired so  cheaply  at  the  prison  that  the  department  of  education 
suspended  the  operation  of  its  repair  shop  and  utilized  the  facilities 
of  the  prison  for  this  purpose. 

The  Akron  Waste  Reclamation  Council,  in  order  to  develop  the 
program  that  material  usable  in  its  present  form  should  not  be  de- 
stroyed in  the  manufacture  of  other  commodities  is  investigating 
the  feasibility  of  employing  misdemeanant  prisoners  to  repair  the 
equipment  of  the  various  city  bureaus  and  departments.  In  order 
to  assure  efficiency  and  to  assist  the  prisoner  in  rehabilitating  himself 
in  the  community,  the  council  is  working  on  the  theory  that  the 
prisoner  should  receive  a  return  for  his  labor,  so  that  he  will  be 
enabled  to  contribute  to  the  maintenance  of  his  family.  Therefore, 
in  developing  this  program  the  spirit  of  the  Executive  order  of 
September  14,  1918,  will  serve  as  a  basis  of  the  program  for  the 
utilization  of  the  dormant  man  power  in  the  local  institution.  The 
Executive  order,  which  is  serving  as  a  basis  of  the  program,  directed 
that  where  prisoners  were  employed  in  the  manufacture  of  supplies 
for  the  United  States  Government  the  "  Compensation  and  hours 
of  labor  for  inmates  of  any  institution  shall  be  based  upon  the 
standard  hours  and  wages  prevailing  in  the  vicinity  in  which  the 
institution  is  located.  The  pro  rata  cost  of  maintaining  the  inmates 
shall  be  deducted  from  their  compensation." 

TRAINING  OF  SALVAGE  MANAGERS. 

The  difficulty  that  the  Akron  Industrial  Salvage  Co.  experienced 
in  securing  the  proper  type  of  man  to  handle  the  managerial  func- 
tion of  the  salvage  movement  served  as  the  basis  for  the  program  of 
education  which  is  now  being  developed  by  the  Waste-Reclamation 
Council.  When  the  salvage  company  was  organized  on  the  theory 
that  it  was  not  a  movement  for  profit  but  for  betterment,  the  organ- 


13 

izers  believed  that  they  could  not  utilize  the  services  of  a  man  trained 
in  the  waste  business,  because  they  were  operating  on  the  theory  that 
material  should  be  handled  because  it  had  a  value  in  use  oftentimes 
far  greater  than  its  value  in  price.  Such  a  system  could  not  be 
followed  by  a  commercial  waste  industry  because  it  would  be  im- 
possible for  the  concern  to  handle  material  that  could  not  pay  its 
way.  To  employ  a  man  trained  in  the  commercial  philosophy  was 
but  to  develop  points  of  friction  between  the  directors  and  the  man- 
ager. The  company  determined  to  secure  a  man  with  broad  business 
experience  accustomed  to  presenting  business  propositions,  so  that 
they  could  be  readily  understood  and  appreciated,  but,  above  all, 
one  who  had  the  confidence  and  respect  of  the  business  men  of  the 
community.  The  services  of  a  man  who  had  had  experience  in 
industrial  promotion  and  advising  was  secured,  and  he,  his  office,  and 
staff  were  taken  over  by  the  company  as  the  administrative  center 
of  the  salvage  movement.  Prior  to  September,  1918,  the  manager 
had  no  experience  in  the  waste  trade;  but,  with  the  advice  and  sug- 
gestions of  Mr.  Sherman,  he  has  been  enabled  to  take  charge  of  the 
sorting  and  sale  of  the  material,  and  through  his  efforts  the  company 
has  been  enabled  to  make  a  fair  financial  showing. 

In  order  to  assist  other  communities  in  organizing  similar  com- 
panies, a  program  for  the  development  of  a  short,  intensive  training 
course,  to  be  conducted  by  one  of  the  local  colleges,  is  under  dis- 
cussion by  the  Waste-Reclamation  Council  of  Akron,  because  they 
believe  that  by  establishing  a  training  course  for  executives  in  con- 
junction with  the  work  of  the  salvage  company  other  communities 
can  inaugurate  their  plans  without  being  forced  to  make  the  same 
errors  which  characterized  the  operation  of  the  salvage  company 
during  the  early  months  of  its  existence.  It  is  believed  that  men 
who  have  served  as  secretaries  of  chambers  of  commerce,  business 
organizations,  and  similar  bodies  could  be  given  a  brief  course  of  not 
more  than  six  weeks  in  length  at  one  of  the  colleges  giving  instruction 
in  chemical  engineering,  the  course  to  be  more  a  survey  of  the  field 
of  by-product  utilization  and  the  use  to  which  various  items  of 
waste  can  be  put,  rather  than  an  intensive  course  in  chemistry.  In 
connection  with  this  survey  course  the  men  could  be  taught  sorting 
and  grading  by  the  extension  method,  each  man  to  be  assigned  to 
the  salvage  departments  of  the  large  concerns  for  a  brief  period  in 
order  to  gain  this  knowledge.  It  is  hoped  that  the  system  can  be 
so  developed  as  to  permit  the  assignment  of  the  men  to  the  Akron 
Industrial  Salvage  Co.  for  a  brief  period,  so  that  the  system  of 
accounting  and  measurement  of  cost  used  by  that  company  may  be 
demonstrated  and  utilized  in  other  centers. 

The  feasibility  of  adopting  this  program  as  a  basis  for  a  full -year 
course  for  men  in  the  senior  class  of  the  institution  is  under  consid- 


14 

eration.  By  giving  a  more  thorough  training  in  chemistry  and  by- 
product utilization,  as  well  as  industrial  training  "through  the  exten- 
sion method,  men  could  be  equipped  to  enter  the  field  as  salvage 
engineers,  or  to  serve  as  managers  of  local  salvage  companies.  As  soon 
as  these  plans  are  more  fully  developed  the  Waste-Keclamatioii 
Council  will  place  the  matter  before  the  trustees  of  one  of  the  insti- 
tutions for  consideration. 

The  Waste-Reclamation  Council  of  Akron,  working  on  suggestions 
placed  before  them  by  the  Department  of  Commerce,  will  doubtless 
develop  a  movement  which  will  assist  other  communities  in  the 
development  of  similar  movements  and  will  make  a  contribution  to 
the  movement  for  national  waste  reclamation  as  fundamental  as 
that  which  has  been  made  in  Great  Britain  by  the  National  Waste 
Products  (Ltd.),  operating  under  the  National  Salvage  Council. 

NATIONAL  WASTE   PRODUCTS    (LTD.)— A   BRITISH   NATIONAL 
INCORPORATED  WASTE-SAVING  PROGRAM. 

While  the  Akron  Industrial  Salvage  Co.  is  primarily  a  community 
waste-saving  experiment,  the  National  Waste  Products  (Ltd.),  oper- 
ating under  the  supervision  of  the  National  Salvage  Council,  is  a 
"  Government  corporation,  run  in  every  respect  on  strict  commercial 
lines,  managed  by  an  executive  board  of  directors  representing  both 
the  army  and  the  civil  side,  debited  with  all  the  ordinary  charges  of 
a  private  or  public  corporation,"  primarily  interested  in  developing 
a  national  waste-saving  movement. 

This  salvage  movement  of  Great  Britain,  like  the  Akron  experi- 
ment, is  the  outgrowth  of  the  war.  The  communities  of  that  country 
were  as  poorly  organized  for  community  saving  as  were  the  urban 
centers  of  this  country.  The  waste  of  the  home  was  destroyed  before 
collection  or  incinerated  after  collection.  Many  of  the  urban  coun- 
cils of  Great  Britain  contracted  for  the  collection  of  their  waste,  and 
the  dustmen,  or  collectors,  were  not  equipped  to  recover  many  valu- 
able lines  of  waste. 

The  war  forced  the  adoption  of  programs  to  stimulate  waste  col- 
lection and  to  check  destruction.  Early  in  the  fall  of  1914  the  local 
Government  board  called  upon  the  urban  councils  to  institute  waste- 
saving  campaigns  in  each  city.  At  that  time  the  emphasis  was 
thrown  on  waste  paper  because  of  the  shipping  situation.  Great 
Britain  manufactured  paper  mostly  from  wood  pulp  imported  from 
Sweden  and  Canada.  To  continue  to  destroy  paper-making  mate- 
rial at  home,  and  manufacture  new  material  from  imported  material, 
was  to  court  disaster. 

The  response  was  instant  and  generous.  The  women  especially 
came  to  the  relief  of  the  Government  and  organized  volunteer  move- 
ments in  every  center  for  waste  collection.  The  success  of  these  cam* 


15 

paigns  can  be  measured  from  the  fact  that  the  average  paper  collec- 
tion in  the  United  Kingdom  in  1914  is  estimated  at  1,000  tons  per 
week;  by  1918  it  had  increased  to  6,000  tons  per  week.  At  the  open- 
ing of  the  war  but  5  per  cent  of  the  total  output  of  paper  in  that 
country  was  utilized  in  the  manufacture  of  paper ;  by  the  close  of  the 
war  about  50  per  cent  was  being  remanufactured  into  new  grades. 

What  was  true  with  regard  to  paper  was  also  true  with  regard  to 
rags,  metals,  and  organic  waste.  The  Government  established  large 
sorting  plants  for  handling  the  cloth  waste  from  the  home  stations 
of  the  army  as  Avell  as  the  waste  from  the  field  of  battle.  The  waste 
of  the  home  stations  and  the  battle  field  was  handled  through  central 
depots,  and  during  the  first  two  years  of  the  war  about  $10,000,000 
worth  of  material  was  sold,  the  cost  of  operation  being  about 
$310,000.  By  adopting  this  system,  woolen  rags  for  the  manufacture 
of  reworked  wool  were  secured  in  large  quantities. 

The  shortage  of  grease  and  fats  led  to  the  development  of  a  unique 
governmental  function,  a  movement  so  expanded  under  war  condi- 
tions that  it  promises  to  be  a  permanent  feature  of  the  activities  of 
the  Government.  The  reduction  of  organic  waste  in  that  country 
is  a  business  controlled  by  private  capital.  The  facilities  and  col- 
lections of  these  companies  had  to  be  greatly  expanded  if  the  country 
was  to  secure  an  adequate  supply  of  grease  and  oils.  In  order  to 
accomplish  this  purpose,  the  Government  organized  the  Army  Waste 
Products  (Ltd.).  This  organization,  which  consisted  of  representa- 
tives of  the  army  and  members  of  the  reducing  firms,  was  empowered 
to  establish  prices  and  to  allocate  the  collection  of  the  material  from 
the  camps  to  the  several  plants.  This  governmental  owned  and 
operated  holding  company  was  successful  from  the  start.  The  first 
statement  of  the  financial  return  of  this  enterprise,  released  to  the 
public  through  the  office  of  the  minister  of  munitions,  placed  the 
value  of  the  glycerin  at  $50,000  per  week. 

.f  The  saving  programs  instituted  by  other  Government  boards  were 
operated  with  equal  success,  but  the  multiplicity  of  boards  and  func- 
tions led  to  confusion  and  lost  motion,  and  to  avoid  this  danger  the 
function  of  the  Army  Waste  Products  (Ltd.)  was  further  expanded 
under  the  supervision  of  a  new  board  known  as  the  national  salvage 
council. 

The  national  salvage  council,  which  is  advisory  in  nature,  consists 
of  a  chairman,  a  deputy  chairman,  and  two  representatives  each  from 
the  war  office,  admiralty,  ministry  of  munitions,  ministry  of  recon- 
struction, ministry  of  food,  local  government  board,  board  of  agri- 
culture, board  of  trade,  and  the  Scottish  office. 

The  national  salvage  council  was  organized  as  an  advisory  board, 
and  was  the  instrument  of  education  in  regard  to  waste  reclamation. 
The  director  general  of  national  salvage,  operating  in  conjunction 


16 

with  the  council  and  under  its  supervision,  was  charged  with  the 
execution  of  the  programs  formulated  by  the  national  salvage  coun- 
cil. The  office  of  the  director  general  of  national  salvage  consisted 
of  a  chairman,  a  deputy  chairman,  and  one  member  each  appointed 
by  the  war  office,  admiralty,  local  government  board,  ministry  of 
munitions,  ministry  of  food,  and  the  board  of  agriculture.  The 
scope  and  function  of  this  board  ranged  from  the  handling  of  the 
waste  of  the  army  to  the  development  of  the  methods  of  collection  of 
the  waste  of  civil  life  and  its  reduction  and  utilization.  This  board 
was  the  clearance  board  through  which  industry  was  supplied  with 
material;  prices  for  waste  material  were  established  in  conjunction 
with  it,  and  the  enforcing  of  the  decrees  for  control  of  waste,  and 
the  development  of  the  avenues  of  consumption  were  also  vested  in 
it.  The  director  general  of  national  salvage  found  many  instances 
where  the  facilities  for  the  collection  and  utilization  of  waste  material 
did  not  exist.  In  order  to  properly  develop  them,  it  was  determined 
that  the  functions  of  the  Army  Waste  Products  (Ltd.)  should  be 
greatly  'expanded,  and  a  new  company,  controlled  by  the  Govern- 
ment and  financed  largely  through  governmental  funds,  was  organ- 
ized, with  sweeping  powers  vested  in  the  newly-organized  National 
Waste  Products  (Ltd.). 

The  purpose  of  such  a  development  was  outlined  in  a  memorandum, 
to  the  office  of  the  department  of  the  surveyor  general  of  supply, 
under  date  of  January  5,  1918.  In  order  to  coordinate  the  efforts 
being  made  by  individual  Government  departments  to  conserve  and 
return  to  circulation  as  serviceable  material  that  had  been  thereto- 
fore either  regarded  as  "  waste  r'  or  disposed  of  in  a  "  wasteful " 
manner,  to  lessen  the  quantity  of  new  raw  material  which  had  to  be 
imported,  thereby  releasing  tonnage  for  other  purposes,  to  increase 
the  supply  of  raw  material  and  to  procure  it  as  cheaply  as  possible, 
it  was  argued  that  the  coordination  of  the  efforts  for  collection  would 
greatly  increase  the  supply,  while  the  coordinated  research  and  in- 
vestigation would  develop  new  channels  of  utilization. 

It  was  pointed  out  in  the  memorandum  that  a  considerable  amount 
of  success  had  been  achieved  in  centralized  Avaste  conservation  by 
means  of  the  Army  Waste  Products  (Ltd.),  a  Government-owned 
corporation  formed  for  the  purpose  of  dealing  with  the  waste  pro- 
ducts of  the  army.  It  was  but  necessary  to  increase  the  scope  of  its 
powers  and  functions  in  order  to  deal  with  the  waste  of  the  indus- 
trial and  communal  life.  Therefore,  it. was  recommended  that  the 
reorganized  company,  operating  under  the  title  of  the  National 
Waste  Products  (Ltd.),  should  have  in  connection  therewith  an  ad- 
visory council  on  which  every  Government  department  in  any  way 
interested  would  be  represented  to  formulate  plans  and  programs 
for  the  development  of  the  larger  movement  for  waste. 


17 

The  functions  of  this  Government  corporation  were  outlined  in 
the  memorandum  of  the  5th  of  January,  1918,  as  follows: 

(1)  To  coordinate,  advise,  suggest,  encourage,  and  if  necessary  direct  the 
operations  of  public  and  private  enterprises,  having-  for  their  object  the  pre- 
vention of  waste,  the  recovery  of  raw  material,  and  the  utilization  of  waste 
products;  and  only  to  themselves  engage  in  such  enterprises  (a)  when  author- 
ities or  individuals  are  unable  or  unwilling  from  the.  nature  or  circumstances 
of  the  case  to  undertake  the  responsibility,    (&)   when  it  is  considered  neces- 
sary or  advisiable  to  put  up  more  or  less  experimental  plants  to  demonstrate 
any  new  or  improved  process,    (c)    when  it  is  considered  that  any  public  or 
private  enterprises  are  not  being  conducted  to  the  best  advantage  from  a  na- 
tional point  of  view,    (d)   when  the  urgent  needs  for  any  particular  class  of 
material  call  for  drastic  action  in  any  particular  direction. 

(2)  To  supervise  and  where  necessary  control  and  provide  for  the  disposal 
either  of  waste  material  or  the  products  derived  therefrom ;  and  in  this  con- 
nection to  regulate  prices  in  a  fair  and  reasonable  manner. 

(3)  To  continually  prosecute  research  work  cither  directly  or  by  coordina- 
tion of  the  various  research  laboratories  throughout  the  Kingdom. 

(4)  To  regulate  all  questions  of  transport  labor  and  priority  in  connection 
with  salvage  schemes  from  the  point  of  view  of  maximum  national  advantage. 

(5)  To  prepare  and  publish  from  time  to  time  statistics  showing  the  prac- 
tical and  commercial  results  arising  from  activities  in  various  directions,  with 
a  view  to  establishing  the  industrial  benefit  to  be  derived  by  the  nation  from 
such  activities,  not  only  during  the  continuance  of  the  war  but  during  the 
equally  difficult  period  of  demobilization  and  reconstruction  to  follow. 

The  following  details  of  the  working  program  had  been  passed 
upon  and  adopted  by  the  Government  at  the  time  the  memorandum 
was  drafted.  It  was  proposed: 

(1)  'That  the  finance  of  the  proposed  company  should  be  provided  by  a  small 
Government   loan   on   which   the   company   could    draw,    if   necessary,    paying 
interest  at  the  usual  rates. 

It  is. hoped  that  the  financial  results  of  the  company's  operations  would  soon 
render  it  independent  of  Government  assistance. 

(2)  All  waste  material  will  be  paid  for  and  any  profits  arising  after  due 
provision  has  been  made  for  depreciation,  amortization,  and  reserve  funds  will 
]fe  distributed  on  a  proportionate  basis  among  the  sources  from  which   the 
waste  materials  were  derived,  to  be  used  in  the  case  of  municipalities,  etc., 
in  relief  of  rates  or  otherwise  for  their  own  purposes. 

(3)  The  business   of  the  company   to   be  divided   into   two   sections,  army 
and  civil,  controlled  by  separate,  managers,  who  will,  however,  work  in  close 
cooperation.     The  development  of  the  civil  side  of  the  company's  activities  will 
be  administered  by  the  principal  officer  of  the  waste-utilization  section  recently 
created  by  the  department  of  food  economy,  which  will  now  with  the  cordial 
approval   of   the   director   of  that   department   be   merged   into   the   national 
scheme.     Army  Waste  Products   (Ltd.)   will  also  be  absorbed,  its  staff  taken 
over  to  administer  the  army  side  of  the  new  company. 

(4)  The  army  salvage  organization  would  be  responsible  for  the  collection 
of  army  waste  while  directions  as   to  civil   waste  would   be   issued   to   local 
authorities,  municipalities,  etc.,  through  the  ordinary  channels  available  to  the 
local  government  board. 


18 

(5)  A  special  section  for  dealing  with  industrial  "  waste  "  in  its  wider  sense 
would  be  set  up  in  due  course. 

(6)  The  principal  objective  of  the  company  will  be  to  insure  that  the  max- 
imum quality  "  waste  "  is  converted  into  "  products  "  for  distribution  and  dis- 
posal to  Government  departments,  etc.    The  disposal  branch  already  operating 
in  connection  with  the  army  salvage  organization  would  be  utilized  and  ex- 
panded by  means  of  a  liaison  executive  clearing  house  system  to  insure  that 
all  waste  products  recovered  are  disposed  of  to  the  best  advantage,  with  due 
regard  to  priority  of  need. 

In  the  memorandum  of  association  requesting  incorporation,  filed 
under  the  companies  act  of  1917,  the  objects  for  w^iich  the  National 
Waste  Products  (Ltd.)  was  established  were  cited,  as  follows: 

(a)  To  encourage  and  promote  the  prevention  of  waste. 

(b)  To   advise,   assist,   foster,   direct,   promote,   or   finance   any   municipal, 
local,  or  other  authorities,  corporations,  companies,  bodies,  firms,  or  individuals 
operating  for  the  prevention  of  waste,  the  recovery  of  waste  products  or  the 
utilization  of  raw  material  or  carrying  on  any  other  salvage  operations. 

(c)  To  supervise  or  provide  for  the  collection  or  disposal  of  waste  or  the 
products  derived  therefrom  and  to  regulate  prices. 

(d)  To  organize,  promote,  finance,  or  assist  in  any  experiments,  tests,  or 
other  research  or  educational  work  in  connection  with  the  utilization  of  waste 
or  other  salvage  operations,  and  to  design,  set  up,  and  operate  any  experi- 
mental or  technical  plants,  and  to  found,  assist,  or  coordinate  any  laboratories 
or  institutions  in  connection  with  any  tests  or  research  work. 

(e)  To    establish,    organize,    and    maintain    information    and   investigation 
bureaus  and  to  collect,  prepare,  and  circulate  statistics  and  information  likely 
to  be  of  assistance  in  promoting  the  effective  treatment  of  waste  material  or 
the  prevention  of  waste  and  indicating  the  commercial  results  derived  or  capable 
of  being  derived  therefrom. 

(/)  To  purchase,  lease,  design,  manufacture,  or  otherwise  acquire,  improve, 
operate,  and  use,  and  to  lend,  let  out,  or  dispose  of  any  plant,  apparatus,  ma- 
chinery, tools,  or  materials  capable  of  being  used  in  connection  with  the  treat- 
ment of  waste  material  or  other  salvage  operations. 

(#)  To  acquire  the  business  and  assets  of  Army  Waste  Products  (Ltd.),  or 
any  part  thereof,  free  from  liabilities  or  subject  to  any  liabilities  or  existing 
contracts  as  the  company  may  consider  expedient. 

(h)  Where  the  national  salvage  council  are  of  opinion  that  the  prevention 
or  treatment  of  waste  or  the  utilization  of  waste  products  or  raw  material 
of  any  description  or  other  salvage  operations  are  not  being  dealt  with  to 
the  utmost  national  advantage,  then  the  company  may,  if  so  directed  by  the 
national  salvage  council,  purchase,  collect,  take  over,  or  otherwise  acquire 
waste  or  raw  material  of  any  description  and  from  any  sources  and  to  refine, 
develop,  improve,  manufacture,  prepare  for  market,  or  otherwise  treat  and 
to  sell  or  otherwise  deal  with  or  dispose  of  the  same  or  any  products  resulting 
therefrom. 

0")  To  purchase  or  otherwise  acquire,  use,  develop,  or  turn  to  account  any 
interest  in  any  patents,  licenses,  processes,  or  the  like  conferring  a  right  to  use 
any  plant,  process,  or  information  concerning  any  invention  or  article  which 
may  seem  capable  of  being  utilized  by  the  company  to  advantage. 

(fc)  To  make  arrangements  for  the  transportation,  shipping,  handling,  and 
distribution  of  any  waste  or  the  products  resulting  therefrom  and,  if  deemed 
expedient,  to  own,  charter,  Tease,  operate,  control,  or  hold  any  interest  in  any 


19 

ships,  railways,  tramways,  motor  vehicles,  or  other  means  of  conveyance  or 
transport,  and  to  acquire,  own,  or  hold  any  interest  in  any  docks,  quays,  sid- 
ings, or  other  shipping  or  railway  facilities. 

(I)  To  acquire  and  hold  any  lands  or  interest  in  lands  or  any  other  property 
or  rights,  whether  real  or  personal,  in  any  part  of  the  world. 

(m)  To  build,  set  up,  construct,  repair,  alter,  or  acquire  any  factories,  work- 
shops, garages,  warehouses,  offices,  or  other  buildings. 

(n)  To  invest  in,  acquire,  hold,  and  dispose  of  the  debentures,  debenture 
stock,  obligations,  stocks,  shares,  securities,  or  investments  of  any  governments, 
municipalities,  authorities,  corporations,  companies,  bodies,  or  firms,  and  to 
place  money  on  deposit  with  any  bankers  or  elsewhere. 

(o)  To  enter  into  any  agreements  for  sharing  profits,  joint  adventure,  or 
other  arrangements  of  a  like  nature  with  any  other  authorities,  corporations, 
companies,  bodies,  firms,  or  individuals  having  the  treatment  of  waste  or  other 
salvage  operations  as  any  of  their  objects. 

0>)  To  borrow  or  raise  money  for  the  purposes  of  the  company  by  the  issue 
of  debentures,  mortgages,  or  otherwise,  as  may  be  thought  expedient,  and  for 
such  purposes  to  charge  (if  thought  fit)  all  or  any  part  of  the  property  of  the 
company  present  or  future,  including  uncalled  capital,  but  no  such  powers  shall 
be  exercised  without  the  sanction  of  the  national  salvage  council  first  given. 

(<y.)  To  make,  draw,  accept,  indorse,  discount,  and  issue  promissory  notes, 
bills  of  exchange,  and  other  negotiable  and  transferable  instruments. 

(r)  To  lend  money  with  or  without  security  upon  such  terms  as  the  company 
may  think  fit  and  to  guarantee  the  performance  of  any  contracts,  covenants, 
or  obligations. 

(s)  To  enter  into  any  arrangements  with  any  Government  or  other  authority, 
whether  municipal,  local  or  otherwise,  and  to  obtain  from  any  such  Government 
or  authority  any  rights,  powers,  concessions,  charters,  or  privileges  which  may 
be  thought  conducive  to  the  furtherance  of  the  company's  objects  or  any  of 
them'. 

(t)  To  sell,  dispose  of,  or  otherwise  deal  with  or  turn  to  account  the  under- 
taking of  the  company  or  all  or  any  part  of  its  assets  or  rights  and  either  for 
cash,  "debentures,  debenture  stock  obligations,  shares  or  interests  or  any  Gov- 
ernment authority,  municipality,  corporation,  company,  or  body. 

(u)  To  do  all  such  other  things  as  are  incidental  or  may  be  thought  conducive  to 
the  attainment  of  the  above  objects  or  any  of  them  and  to  operate  in  any  part 
of  the  world. 

Waste  conservation  was  a  war-time  necessity.  The  methods  de- 
veloped to  meet  the  war  situation  will  doubtless  serve  as  a  basis  of 
organization  of  the  movements  for  conservation  in  peace  tijnes.  This 
war-born  organization  for  a  nation-wide  system  of  reclamation  will 
doubtless  assist  Great  Britain  materially  in  the  intense  commercial 
competition  which  is  certain  to  follow  as  a  result  of  the  struggle  to 
regain  markets  lost  during  the  war.  The  National  Waste  Products 
(Ltd.),  is  an  instrument  evolved  by  the  British  Government  to  assist 
the  military  program.  Its  retention  as  an  aid  in  the  commercial 
program  is  practically  assured.  The  Akron  Industrial  Salvage  Co. 
experiment  was  the  outgrowth  of  a  war  necessity.  It  was  an  instru- 
ment evolved  under  similar  circumstances  by  an  agency  of  our  Gov- 
ernment to  assist  in  the  military  program  of  this  country.  The 


20 

program  was  evolved  in  the  same  month  and  year  that  Great  Britain 
reorganized  her  national  system  of  waste  reclamation,  and  was  put 
into  effect  at  practically  the  same  time.  Both  systems  demonstrated 
their  value  under  war  conditions.  Their  wider  use  and  adaptation 
to  the  needs  of  the  countries  under  peace-time  conditions  will  doubt- 
less be  made. 

The  future  development  of  the  National  Waste  Products  (Ltd.), 
being  a  Government  corporation,  rests  solely  with  the  British  Gov- 
ernment; the  further  development  and  extension  of  the  American 
experiment  for  waste  saving,  by  means  of  a  community-incorporated 
system,  rests  with  the  municipal  authorities,  boards  of  trade,  and 
other  civic  bodies  of  this  country. 


o 


14  DAY  USE 

RETURN  TO  DESK  FROM  WHICH  BORROWED 

DOCUMENTS  DEPT. 


This  book  is  due  on  the  last  date  stamped  below,  or 
on  the  date  to  which  renewed. 
Renewed  books  are  subject  to  immediate  recall. 

642-2569 

* 

LD  ?,l-20m-8,'61 
(C1795slO)476 


General  Library 

University  of  California 

Berkeley 


